[clue-talk] The stimulus bill

[Angelo Bertolli]

Sean LeBlanc wrote:
> As for Obama, I have few illusions, I think. The man is a moderate, and he
> ran as a moderate. He's not perfect. Just as no ideology is perfect.
> Pragmatism is something we should be bringing to bear, regardless of how
> politically incorrect some demagogues on the right or left find it.
> Ideologies usually run into problems in the real world, whether they are
> disaster capitalism or communism. Sometimes human behavior and inconvenient
> facts get in the way.
>   

The guy has been in office for less than a month.  Anyone who already 
has a judgement about his "performance" is really just bitter about the 
election results.  I haven't been star-struck with the reaction to what 
I think is the most immediate pressing issue:  the financial crisis.  
Supposedly they have a "little plan" that they will unveil on monday, 
but I hate to say I'm less than optimistic.

First of all, I'm starting to get the feeling that Geitner doesn't 
really understand the magnitude of what's going on here, or how it can 
affect things.  (It's certain that the general public and the media do 
not understand, as well as some so-called experts.)  The financial 
sector has taken severe hits on wallstreet this week because although we 
now have a new Treasury Secretary, he didn't bother to come pre-equipped 
with an idea of a plan, or even a few encouraging words.  I think he did 
deny the possibility of nationalizing the banks, but it's really not 
enough at this point since people are worried that the mortgages may 
actually be worth near zero.  (Of course that can't be true, but it is 
panic time.)  I thought Paulson was a disaster, but it seems Geitner 
isn't doing much better (yet?), so maybe this problem is just too big 
for a human to handle.

But maybe I'm wrong.  Maybe all the blood in the streets is the price to 
pay for this magnificent plan that's going to pull our financial system 
out of the gutter.  But as of Wednesday they said they still didn't have 
a plan.  So call me crazy, but it's not really inspiring.  Not to 
mention that because the media and public don't really understand what 
is going on, it's politically unpopular to try to "save the banks" even 
though it also means saving the retirement plans of most people who did 
the "right thing" and invested in funds.

I've already resigned myself to accept that the only real way out of 
this problem is to inflate our way out.  It's the most even way to 
distribute the burden anyway.  I've already got my access card from 
treasurydirect.gov and am saving the money I need to buy those inflation 
protected securities.  (I expect few things to significantly outpace 
inflation in the coming years.)

> If we have to engage in more "socialism", to minimize the pain, so be it.
> Ideologues can complain until the cows come home that it's not politically
> correct according to Saint Ronnie or Friedman, but tough. If it doesn't go
> as far as some might want, or there isn't enough pork for some interests,
> that's also too bad.
>   

Yeah, I think some people lose sight of what's really important amidst 
their political rhetoric, ideology, and nostalgia.  All of those things 
are luxuries.  But I'm starting to think they're stunting the mental 
capabilities of Americans.

> I suspect that, in the final analysis, he'll be just slightly to the left of
> Clinton, who was ultimately the Republicans' best friend. Maybe he'll even
> go out with something like a stained dress to give them something for all
> their troubles and bleating about what a bad man he supposedly is over the
> years.
>   

As they say, the proof is in the pudding.  I think if Obama does well, 
most people will come around.  Sure there will always be a market (and a 
profitable one too!) for a certain subsection of the population to 
demonize the opposing team.


Angelo